Question High-Roller Insurance Company insures the cost of injuries to the employees of ACME Dynamite Manufacturing, Inc. i) 30% of injuries are fatal and the rest are permanent total (PT). No other injury types occur. ii) Fatal injuries follow a loglogistic distribution with 0 = 400 and y = 2. iii) PT injuries follow a loglogistic distribution with 0 = 600 and y = 2. iv) There is a $750 deductible per injury. Calculate the probability that an injury will result in a claim to High-Roller. Possible Answers < 30% B 2 30% but < 35% c 2 35% but < 40% D 2 40% but < 45% E 2 45%

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High-Roller Insurance Company insures the cost of injuries to the employees of ACME Dynamite Manufacturing, Inc.
i) 30% of injuries are fatal and the rest are permanent total (PT). No other injury types occur.
ii) Fatal injuries follow a loglogistic distribution with 0 = 400 and y = 2.
iii) PT injuries follow a loglogistic distribution with 0 = 600 andy = 2.
iv) There is a $750 deductible per injury.
Calculate the probability that an injury will result in a claim to High-Roller.
Possible Answers
< 30%
A
> 30% but < 35%
B
C
> 35% but < 40%
> 40% but < 45%
D
E 2 45%
Transcribed Image Text:Question High-Roller Insurance Company insures the cost of injuries to the employees of ACME Dynamite Manufacturing, Inc. i) 30% of injuries are fatal and the rest are permanent total (PT). No other injury types occur. ii) Fatal injuries follow a loglogistic distribution with 0 = 400 and y = 2. iii) PT injuries follow a loglogistic distribution with 0 = 600 andy = 2. iv) There is a $750 deductible per injury. Calculate the probability that an injury will result in a claim to High-Roller. Possible Answers < 30% A > 30% but < 35% B C > 35% but < 40% > 40% but < 45% D E 2 45%
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